Multiple Choice
On October 1, 2013, a company paid $9,000 rent in advance. The rent per month is $1,000. Assuming the company's accounting period ends on December 31, 2013, what will be reported on the financial statements?
A) Prepaid Rent of $6,000 on its balance sheet at December 31, 2013
B) Prepaid Rent of $9,000 on its balance sheet at December 31, 2013
C) Rent Expense of $9,000 on its 2013 income statement
D) Rent Revenue of $6,000 on its 2013 income statement
Correct Answer:
Verified
Correct Answer:
Verified
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